I want to stay in Sunnyvale only for 4-5 years. Should I buy or rent? I am looking in Mountain View, Saratog

Asked by Sue, Thu Sep 13, 2007

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7
Brian Fortune, , San Jose, CA
Thu Oct 11, 2007
Renting over such a long period of time makes no economic sense, as everyone else has commented. However, Mountain View and Saratoga are two totally different markets and you will get more for your buck in Mountain View than in Saratoga and from an investment point of view probably more growth potential.
Web Reference:  http://www.rwwindsor.com
1 vote
Robert Lei, Agent, Cupertino, CA
Sat Jun 25, 2011
Back in 2007 you should have been thinking of SELLING not buying. My broker and our real estate office were one of the few offices that were advising all our clients to SELL not buy.

That being said, this downturn is now the right time to BUY or MOVE UP.

Nothing's a guarantee but most likely if you buy during this downturn, you'll be looking at a pretty good appreciation 4-5 years from now. Just like when the stock market was gloom and doom 2yrs ago (end of 2008, beginning of 2009) and people weren't sure whether stocks were going to go up or down from there.

If were renting all this time, then you were smart not to join the herd in 2007, but now in 2011 it's time to buy.
0 votes
Jason, , Reno, NV
Sun Nov 18, 2007
I lived in Sunnyvale for the better part of 20 years growing up, and then bought a home in Sunnyvale in 1998 which I sold 18 months later in 2000. I thought I was smart and lucky...I sold two months before the NASDAQ crashed. The home I sold did in fact go down in value after I sold, but only for about a year. Then it continued its long term rise. In many markets, I would advise you to examine your finances, etc. In Sunnyvale, there has been considerably more demand then supply for as long as I remember and the homes in the Fremont High School district seem to be very well insulated from downturns of more than a few months. (My parents still live in that district and houses on their block are selling in 3-4 days with multiple offers even while most of the country's housing market is suffering.) Given the disparity between the cost of owning and renting in Sunnyvale, you'd think renting is the better bet, but given that market's long term rate of appreciation (something like 7-8% per year) and its incredible consistancy, I think buying is the sensible option with a 4 year time frame as long as you're in the right school district.
0 votes
David Blockh…, Agent, Los Altos, CA
Tue Nov 6, 2007
Sue,

Buy and buy within the next 4 months while the market is at its seasonal low and I would buy in best school district that you could afford in either city (based on your price point and preferneces). Best of luck to you.
0 votes
Sean Murphy, , Los Altos, CA
Fri Oct 5, 2007
If you decide to rent, you will almost certainly pay less a month for a better home, but it would be very difficult for most people to save more money over this time than they can make by investing in a home. Real estate, particularly in our area, really does tend to gain value significantly over time. The difference between how much you paid for your house, and how much you sell it for, minus broker commissions, is your profit. This can be a fairly big number, even over 5 years. You will also have built equity through your monthly mortgage payment over this time. At the end of a lease, you will walk away with nothing. The interest you pay on a home loan is also tax deductible, whereas rent is not. Interest is the biggest part of your monthly mortgage payment at the beginning of a loan, so this deduction can really add up. The system is structured to make home ownership profitable and attractive. Realizing and taking advantage of this can really make a difference in how much cash you have available when you decide to move.
Web Reference:  http://ProchnowRealtors.com
0 votes
Pam Winterba…, Agent, Danville, VA
Thu Sep 13, 2007
Take a look at your existing financial situation and project where you will be in 5 years. How will the effect of owning property (tax) write off help you now. Will it better your position in 5 years. Also, talk with your CPA to confirm any questions you may have.
Web Reference:  http://pamwinterbauer.com
0 votes
Artur Urbans…, Agent, Burlingame, CA
Thu Sep 13, 2007
Sue,
Envision your financial situation 4 to 5 years from now. If you buy now, you might not want to sell 4 to 5 years from now. You might want to rent it out and exchange in the future. Buying now, gives you a rare opportunity to use your future investment as home. Therefore you don't have to worry about positive cash flow now and you will be buying in the ares which is definitely going to continue appreciate long term. Look at your plans and overall investment portfolio. Make sure to diversify!
Web Reference:  http://www.cimpler.com
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